The Retail Inventory System

Multiple Choice

The retail inventory system

A) provides the same level of internal control as a periodic inventory system.
B) cannot be used if inventory purchases are made at different costs during the period.
C) records inventory purchases by debiting Inventory for the selling price of the merchandise purchased.
D) calculates a cost-to-retail percentage by dividing the cost of purchases by the cost of goods sold.
E) allows for determination of inventory losses during the period.